GOP bill to retaliate against utilities?

GOP lawmakers and industry lobbyists are talking about legislation aimed at reining in power companies after some utilities were seen as being less than friendly to their efforts to block Obama administration climate change rules.

Several House Energy and Commerce Committee Republicans and industry lobbyists are pushing for a “Ratepayer Protection Act,” a measure that would limit utilities’ ability to pass along costs to consumers, according to lobbyists close to the committee.

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The discussions come after POLITICO last week reported that several top utility CEOs weren’t thrilled with a draft bill from Energy and Commerce Committee Chairman Fred Upton (R-Mich.) to preempt the EPA on climate change.

CEOs from American Electric Power, NextEra Energy, Southern Co. and Dominion Resources said to varying degrees that they support allowing the EPA to proceed on a “reasonable” time frame on greenhouse gas rules for power plants, petroleum refiners and other major stationary sources.

Their comments sparked uproar on Capitol Hill and among industry groups pushing for the bill. Southern Co. CEO Tom Fanning insisted shortly afterward that he does indeed back a proposal that would put an immediate halt to EPA climate rules.

In response to the hubbub, some on K Street are now “beating the drum” for the ratepayer bill, one lobbyist told POLITICO.

A ratepayer measure could surface as early as this week. Rep. Cliff Stearns (R-Fla.), chairman of the Energy and Commerce Oversight Subcommittee, said he’d like to include such a measure in the bill to block EPA rules. That bill is slated for subcommittee markup on Thursday.

“I have that in mind,” Stearns told POLITICO, but said he wants to clear it with Energy and Power Subcommittee Chairman Ed Whitfield (R-Ky.). “I think I want to talk to him to see if it could be some, either part of the bill or it could be an amendment, but I was hoping that he could solve this problem.”

Stearns wouldn't confirm details of the bill and said his interest in such a measure was not based on a perception that utilities had gone too far with their remarks. The Florida Republican has offered several “ratepayer protection” bills in previous Congresses.

Whitfield said Tuesday he had no plans to include it in the base bill, but Stearns had mentioned it to him. “I haven’t seen it,” Whitfield said. But he said he told Stearns “it’s an open process,” so he could offer it as an amendment.

The Industrial Energy Consumers of America – a group that represents energy-intensive manufacturing industries – also called on Congress last week to enact legislation that “prevents regulated electric utilities from having the ability to automatically pass all environmental regulation costs onto us, the consumer.”

In response to comments from utilities in support for greenhouse gas rules, IECA President Paul Cicio wrote a letter to lawmakers asking them to ensure that regulated power companies “should not be allowed to profit from EPA’s GHG regulation by earning a guaranteed rate of return on investments in building new costly power plants while shutting down existing facilities.”